Enjoy a fee-free home loan with a sharp, discounted rate from a lender backed by NAB.
The UBank UHomeLoan offers a low variable interest rate, a $0 application fee and no ongoing maintenance fees. However, if you would prefer the certainty of a fixed rate home loan UBank offers the UBank UHomeLoan Fixed Rate.
| Product Name | UBank UHomeLoan Variable Rate |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $100,000 |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 80% |
| Mortgage Offset Account | No |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Fixed Interest Option | Yes |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $0 |
|---|---|
| Lender's Legal Fee | $0 |
| Valuation Fee | $0 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $0 |
| Discharge Fee | $0 |
Pros
- There is a $0 application fee.
- You can make extra payments at any time and withdraw the funds using the free redraw facility.
- You can split your loan to keep personal and investment funds separate.
Cons
- Maximum loan amount is limited to 80% of the property's value.
- No offset account.
What do I need to know about the UBank UHomeLoan (Variable Rate)?
The UBank UHomeLoan allows you to refinance your current loan or purchase a new home, but it is not available for construction or business purposes. This loan is available as a full documentation loan only.
Are you eligible for a UBank UHomeLoan?
To be eligible for the UBank UHomeLoan, you must:
- Currently be earning a Pay As You Go (PAYG) income from an employer (this excludes rent, Centrelink payments, superannuation or family payments as your main source of income).
- Never have committed a financial crime or declared bankruptcy.
- Be an Australian resident with an Australian residential address.
Winner of the 2017 finder award for Best Online Customer Service
Winner of the 2017 finder award for Best Online Customer ServiceAt the 2017 finder awards, UBank won first prize in the Best Online Customer Service category, beating out such finance brands as Budget Direct, Fast Cover, Lovehoney and Teachers Mutual to take the top spot.
Customer service is a category that's often hard for borrowers to evaluate without prior experience. But it's a worthwhile point of comparison when shopping around for a home loan. After all, a mortgage is likely the largest sum of money you'll ever borrow.
Being able to access your loan account easily and get fair, friendly help from your lender makes the whole experience much better, from application to settlement and far beyond.
What are the features and benefits of this home loan?
- No fees: The UBank UHomeLoan (Variable Rate) comes with no application fees, ongoing fees or break fees if you pay the loan out early. There are also no fees for making additional payments towards your loan.
- Unlimited free redraws: If you manage to get ahead with your repayments, UBank will allow you to withdraw additional funds as you need them. You can redraw as many times as you want for free provided that you withdraw more than $1,000 per redraw.
- Maximum LVR: The maximum loan-to-value (LVR) of the UHomeLoan (Variable Rate) is 80%, with a loan term of up to 30 years.
- Portability: If you decide to sell your property and buy another, this loan can be transferred provided the property is approved by UBank. This saves you time and money in having to reapply for a new loan.
- Interest-only payments: This home loan allows interest-only repayments. Be aware, however, that making interest-only repayments will not reduce the principal on your home loan.
- Split loan option: You can split your loan up to four times. This means you can have some of your loan calculated on a variable rate and the other portion calculated on a fixed-rate. This can save you money if interest rates rise, while giving you savings if interest rates drop.
- Online account management: UBank is an online lender so it allows you to perform redraws and additional repayments using 'My UHomeLoan'. In addition, it provides a 24-7 customer service hotline.
What fees and charges come with this loan?
There are no ongoing, annual or applications fees charged with the UBank UHomeLoan (Variable Rate).
How do I apply for the UBank UHomeLoan (Variable Rate)?
If you believe the UBank UHomeLoan (Variable Rate) sounds right for you, click on the 'Go to site' button and you'll be redirected to the UBank website where you can leave your details and get in touch with a UBank mortgage expert.
The application process consists of several stages; the application, approval, verification, valuation, assessment, approval and settlement.
During the application process, you'll be asked to offer information about your income, assets, liabilities and expenses.
Does UBank offer pre-approval?
The UBank UHomeLoan offers pre-approval for new purchases only. UBank calls this 'Approval in Principle' and it lasts for 60 days.
Approval in principle takes 3-5 days to receive, and you can apply for this by clicking the green 'Go to site' button on this page and starting an application with UBank.
What documents are required?
The paperwork required for the application will depend on whether you're purchasing a property or refinancing an existing loan. However, when you apply for the UBank UHomeLoan (Variable Rate) , you'll generally need to provide:
- Loan purpose. You'll need to specify the loan purpose (e.g. new purchase or refinance).
- Personal details. UBank will require you to disclose your full name, date of birth, residential address and contact details. You'll need to provide a copy of your driver's license and your passport which clearly shows your signature and photo.
- Employment details. When you apply for the UBank UHomeLoan (Variable Rate), you'll need to provide two recent payslips that specify your employer's name, the pay period and your gross or net income. You may also need to lodge a signed employer consent form. You'll need to provide evidence of other income (e.g. government payments or rental income).
- Liabilities. You'll need to provide statements for any liabilities that you have, such as credit cards or personal loans.
- Property details. During the application, you'll need to put forward the contract of sale. This document should identify the property type, address, purchase price, vendor's details and the signature of all parties.
Once you've completed your application, you can download the documents checklist from your application tracker.
Does this home loan apply for owner occupier and investment properties?
Hi Teresa,
Thank you for reaching out to finder.
The UBank UHomeLoan allows you to refinance your current loan or purchase a new home, but it is not available for construction or business purposes. This loan is available as a full documentation loan only and for owner occupier applications. Hope this helps!
Cheers,
Reggie
Hi,
I earn income through contract work rather than as a permanent employee, and have done so consistently for years – does this impact on my chances of getting a loan, even if I have a deposit ready and have ongoing income?
Hi Essbee,
Thanks for reaching out.
Well, your chances of getting approved for a home loan would entirely depend on the lender’s overall assessment of your financial situation which is not limited to your employment, salary, other debts and liabilities, assets and even including your credit worthiness. You’d be able to know your chances of approval by contacting your lender and confirm your eligibility. It may also help to speak with a mortgage broker who can also take your circumstances into account and help you find a suitable home loan.
Cheers,
May
What are the total settlement costs including valuation and legal fees and application fees
Hi RW Shields,
Thank you for reaching out to finder.
Clicking Go to site will take you to the lender’s website.
After completing the contact form, a mortgage expert will contact you.
The mortgage expert will ensure you find the right loan, calculate your repayments, and explains all the associated fees.
After going through the enquiry process you will be able to know how much you can borrow, begin your application when you are ready to apply and be approved for a home loan. The page we are on gives you the general fees associated with taking out a loan with UBank. Hope this helps!
Cheers,
Reggie
I own my own home but would like to help my adult daughter buy her own home. Could I take out a mortgage on my house – I am 71.
Hi AnnB,
Thank you for getting in touch with finder.
Sorry for the delay. Just to confirm, you’d like to be a guarantor for your daughter and will use your own home as a security for loan application? If so, yes you can do that, but you’d need to speak to a mortgage broker who can take your circumstance into account, especially that you’re already 71 years of age. The brokers will be able to help you with your daughter’s borrowing options as well.
In the meantime, you might find our guide here on guarantor home loan useful for comparing your options for your daughter. From that page you can also find details how guarantor home loan works and learn the benefits of this type of home loan.
Hope this has helped.
Cheers,
May
Do you loan to small business owners as I have an investment property I am interested in refinancing next year ($480K to be borrowed valued at around $750k) which is currently with ING. Business has been in operation for over 10 years and annual income taxable income is around $350k per annum which is split to a family trust. As such I am not a paye.
Hi Noel,
Thanks for your question.
Yes, Ubank offers refinancing home loans even for small business owners. If you like to apply, you can visit their website directly by clicking the ‘Go to site’ button above. You can also contact them directly if you want to discuss your loan options.
In case you would also want to check other lenders for refinancing your investment property, you can check your options on this page. In the table from that page, different brands were listed then you can sort them according to interest, LVR, fees, etc. You can then click on the ‘Go to site’ button if you wish to get redirected to the lender’s main page.
Meanwhile, you’d be best to get in touch with a mortgage broker who can also take your circumstance into account and offer you a wide range of refinancing options for your investment property.
Hope this helps.
Cheers,
May
Where can i get a house loan or approved loan for $100,000 .
I have $300,000 towards the house purchase & we are on an aged pension $1420 fortnight for husband & wife team , the house should be valued at well over $400,000 + when finished
Hi George,
Thanks for getting in touch with finder. I hope all is well with you. :)
The minimum borrowing amount for UBank is $200,000. However, you might still check with them if they can accommodate your need.
Generally, if you’re an pensioner, your situation might limit available options. Most lenders would like their borrowers to have a certain level of stable income and pensioners are more likely to have a lower monthly income. However, if you have assets that you can use a guarantee or collateral, this could increase your chance of getting approved.
To learn more about how you can obtain a home loan as an aged pensioner, please go to this PAGE. Next, it would also be a good idea to discuss your eligibility with your chosen lender. Finally, please don’t hesitate to speak to a mortgage broker to further explore your options.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I am an Australian Citizen currently working overseas will like to apply a mortgage for investment property. May you please advise how to proceed with my application?
Hi Munir,
Thank you for leaving a question.
Please see the eligibility requirements for taking out a UBank UHomeLoan below:
Currently be earning a Pay As You Go (PAYG) income from an employer (this excludes rent, Centrelink payments, superannuation or family payments as your main source of income).
Never have committed a financial crime or declared bankruptcy.
Be an Australian resident with an Australian residential address.
With all of this in mind, applying for this loan is simply clicking on the “Go to site” button on this page to be routed to the application page for the UHomeLoan. Hope this helps!
Cheers,
Reggie
Will you provide loan for self employed?
Hi Alan,
Thanks for getting in touch with finder. I hope all is well with you. :)
One of the eligibility requirements for UBank UHomeLoan is you should be earning a Pay As You Go (PAYG) income from an employer. For this reason, you might not get approved as a self-employed application. You might want to check our list of lenders who accommodate self-employed applicants here.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
What are the best owner occupier P&I with offset loan deals?
Hello Jon,
Thank you for your comment.
Please note that we can only give you general advice as a comparison website. You may want to check our home loans with free offset accounts that are designed for Owner Occupier P&I. Please use the page as a guide in comparing the home loan products. After you compare the products and have come to a decision, just click the Go to Site button to apply.
Please ensure that you meet the eligibility criteria and requirements before submitting an application. If necessary, please speak to the lender and seek advise from a mortgage broker to discuss options based on your needs.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
Can the mortgage be paid via 2 bank accounts, eg want to borrow $320000, can we have 160000 in two separate bank accounts but same mortgage. WE own our house but have two separate bank accounts in two separate names, value house $860000, owe current $280000, but wish to borrow 320 over 15years, one mortgage, 160000 in ech bank account???? Thanks
Hi Sandra,
Thanks for your inquiry
Joint accounts work well for people who spend money in a similar way. Both people should agree how and when they will deposit and withdraw money, to meet the same goals. It can also make joint payments like mortgage, rent and other bills easier to manage.
Hope this information helps
Cheers,
Arnold